{"id":32363,"date":"2024-12-18T11:00:00","date_gmt":"2024-12-18T11:00:00","guid":{"rendered":"https:\/\/www.prnasia.com\/story\/archive\/4582584_CN82584_0"},"modified":"2024-12-18T11:00:00","modified_gmt":"2024-12-18T11:00:00","slug":"tokyo-lifestyle-co-ltd-reports-first-six-months-of-fiscal-year-2025-financial-results","status":"publish","type":"post","link":"https:\/\/transmediavictoria.net.au\/?p=32363","title":{"rendered":"Tokyo Lifestyle Co., Ltd. Reports First Six Months of Fiscal Year 2025 Financial Results"},"content":{"rendered":"
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TOKYO<\/span><\/span>, Dec. 18, 2024<\/span><\/span> \/PRNewswire\/ — Tokyo Lifestyle Co., Ltd. (“Tokyo Lifestyle” or the “Company”) (Nasdaq: TKLF), a retailer and wholesaler of Japanese beauty and health products, sundry products, luxury products, electronic products, as well as other products in Hong Kong, Japan, North America and the United Kingdom, today announced its unaudited financial results for the first six months of fiscal year 2025 ended September 30, 2024.<\/p>\n

Mr. Mei Kanayama<\/span>, Principal Executive Officer of Tokyo Lifestyle, commented, “I am thrilled to report that Tokyo Lifestyle has achieved significant success during the first six months of fiscal year 2025. Our total revenue increased by 32.1%, and income from operations increased by 867.8%, underscoring our strong growth trajectory and strategic execution.<\/p>\n

For the six months ended September 30, 2024<\/span>, total revenue reached $98 million<\/span>, representing a 32% increase from $74.2 million<\/span> for the same period last year, driven by the robust performance of our expanding franchise network and dedicated wholesale customer base.<\/p>\n

For the six months ended September 30, 2024<\/span>, our extensive customer base of directly-operated stores and online sales channels, generated $11 million<\/span> in revenue during the period, despite challenging market conditions. Notably, for the six months ended September 30, 2024<\/span>, revenue from franchise stores and wholesale customers grew by 53.8% to $86.9 million<\/span>, supported by a 16.7% expansion in total stock-keeping units (SKUs), which reached approximately 165,200 SKUs. Meanwhile, the number of wholesale customers and franchisees increased by 30, from 171 as of March 31, 2024<\/span>, to 201 as of September 30, 2024<\/span>. This demonstrates that the growth in our customer base significantly fueled our revenue growth.<\/p>\n

Revenue generated from companies in Japan<\/span> accounted for 71.7% of total revenue for the six months ended September 30, 2024<\/span>, while revenue generated from companies in Hong Kong<\/span> and other regions contributed 28.3%. Notably, three franchise customers in Japan<\/span> collectively generated $10.42 million<\/span> in revenue from April to September 2024<\/span>, and we anticipate continued growth from our franchisees in Japan<\/span> and Hong Kong<\/span>.<\/p>\n

Despite a challenging business environment and intensified competition in our directly operated physical stores, we adopted a flexible and resilient strategy. This included optimizing our existing physical and online stores, while steadily and rapidly expanding our sales network and franchise partnerships in key markets such as Hong Kong<\/span>, Southeast Asia<\/span>, Europe<\/span>, and North America<\/span>. We believe that these efforts have significantly improved our profitability while enhancing our brand visibility and global recognition. Through careful planning and partner selection, we believe that we have laid a solid foundation for future global expansion and growth.<\/p>\n

Beyond strengthening our presence in the Asian market, we are actively exploring opportunities in North America<\/span>, Europe<\/span>, and new business sectors. We have made notable progress, including opening a new Reiwatakiya store at Fashion Show Las Vegas, launching online platforms for the Reiwatakiya brand in the UK and Canada<\/span>, and establishing a joint venture to develop the trading card retail business. These strategic initiatives further reinforce our business presence and enhance global brand recognition.<\/p>\n

We believe that our continued focus on exploring new opportunities while fostering loyalty among existing customers through best-in-class quality and services has resulted in a steadily expanding customer base and strong financial performance, and our growth strategies and operational achievements have been acknowledged by the market and industry — we are honored to have been awarded a Gold Stevie\u00ae Award in the ‘Company of the Year – Retail – Medium-size’ category at the 21st Annual International Business Awards\u00ae in September 2024<\/span>.<\/p>\n

Looking ahead, we remain committed to our robust strategies, including strengthening our current market footprint, closely monitoring evolving market trends and customer preferences, improving operational efficiency and profitability, optimizing our distribution network and commercial outlets, and exploring new partnership opportunities. We are confident these efforts will contribute to a brighter future and greater value for our Company and shareholders.”<\/p>\n

Mr. Youichiro Haga, Principal Accounting and Financial Officer of Tokyo Lifestyle, added: “I am proud to share the Company’s strong financial performance for the first half of fiscal year 2025. Alongside significant revenue growth, our gross profit increased by 28.4% during the period, with a stable gross margin exceeding 12%. Despite a challenging macroeconomic environment and fierce competition in both physical and online retail, our strategic transformations\u2014such as reducing underperforming stores and refining our product portfolio\u2014resulted in higher gross profit and stable margins across all three business lines.<\/p>\n

While the cost of revenue rose slightly in line with revenue growth, this reflects our strategic investments in expanding into new territories and sectors with carefully selected partners. Meanwhile, our cost-control measures have proven effective, as our operating expenses decreased by 2.2%, even with an increase in headcount to support our rapid expansion. These results demonstrate the effectiveness of our focus on cost management, strategic investment, and revenue growth. For the first half of fiscal year 2025, we reported a net income of $1.3 million<\/span>, with cash reserves of $3.1 million<\/span> and stable working capital of $28.5 million<\/span> as of September 30, 2024<\/span>.<\/p>\n

Looking forward, we will continue enhancing financial performance through robust business strategies, disciplined cost management, and strategic investments. We remain focused on identifying new revenue streams and are confident that these efforts will drive sustained long-term value for our shareholders.”<\/p>\n

First Six Months of Fiscal Year 2025 Financial Highlights<\/b><\/p>\n